Best Mortgage lender Western burbs of Chicago

[Brandon S.]

I am working on getting my financing lined up to buy a duplex, triplex, or quad. I plan to live in one of the units and house hack. I currently live in a condo and plan to sell this to use as part of the downpayment. I expect to have about 40k as a downpayment. Most of the properties I am looking at are between 270k and 400k.

I am wondering what the best banks or credit unions offer the best rates for investors near Naperville, Wheaton, Warrenville, Clarendon Hills, Downers Grove, Westmont, Plainfield, Romeoville, etc.

Zips include: 60563 60187 60555 60569 60521 60561 60523 60490 60544 60585 60586

Thanks!

[Perry Farella]

Another thought here is to use an Investors Rehab loan called HomeStyle. That way all the debt is on the new investment house on not your own cash ( ask yourself what Trump would do LOL). HomeStyle works on single family investment properties or condos or townhouses but not on multi-units. It is a conventional loan insured by Fannie Mae. You need a 20% down payment on the total of the purchase price plus rehab funds needed. It is on a 30 year term so cost is about $5 a month per each thousand dollars borrowed.  Usually is best if you buy a beat up property that needs rehab you get it for less because its scary to most buyers and you gain quick equity in the rehab.

For a 2, 3 or 4 unit the best loan is FHA 203k as you can borrow the funds with as little as a 3.50% down payment, agree to live there for 12 months and then rent it all out. Add any rehab funds into the same loan at the same 30 year rate/payment. You can even borrow to 110% of future appraised value.There is a Cook County grant available for up to 6% of the purchase price with a rehab loan also I know of if you will live there.  

You do have to hire a general contractor to do the work, no "self help" in either rehab loan. This is a managed process to keep you from getting into trouble basically. It works for 2 important reasons; 1) the future rent is projected that the house will generate and you get 75% of that as extra income to qualify for the mortgage; 2) the future, finished value of the house after all rehab is done, is used as Appraised value to allow you to borrow the funds. Example: old house costs 50k to buy and 50k more to rehab, down payment is 20% of that or 20,000; future value with that 50k rehab is appraised to be 120k. You win. You can flip the house, the lender cant stop you or make you rent it. But rental is assumed so you get the credit or extra income based on Appraiser survey of local rents for similar homes to get the mortgage approved. All without  using your own cash for the whole deal. I write a blog on rehab loans called Rehab Dollars & Sense at perryfarella.com. Look for the HomeStyle and 203k rehab stories there.